Chandigarh, India Mar 19, 2021 (Issuewire.com) - Cyclical industries are those organizations that earn a profit during periods of increased business sales and make losses during the other seasons; they are also called seasonal industries. There are certain items without which we cannot live, like the soap industry would never stop manufacturing soaps as it is a daily necessity. On the other hand, there are other firms such as the ice cream industry that would stop making ice creams during winters as the demand reduces during this time. The promotional strategy of a cyclical industry is a bit different from non-cyclical ones. There are both short and long-term effects of advertising on sales growth. Short-term advertising may be adopted for cyclical industries and long-term advertising is adopted by non-cyclical ones. The brand advertising company, which is a cyclical industry, adopts certain strategies for promotion and increasing sales as given below:
Unavailability of Cyclical Stocks in Market During Periods of Lower Demand
During periods of economic prosperity or increased sales, cyclical firms increase their level of promotions. For example; consumers do not wear sweaters throughout the year but they do wear them when it is winter season, so there is an increased demand for sweaters in winters. Therefore, the firms also increase the prices of sweaters in winter. Sweaters become a necessity amid chilly time and it loses its value while it's summers. We may not find any sweater in the middle of summers in shopping malls or even at online portals. When the demand for cyclical stocks is quite low in the market, companies stop spending on them to reduce the loss.
Promotions Should Be Done Amid Periods of Economic Prosperity
While the periods of economic prosperity are going on, the firm should concentrate more on its promotional activities. It should include building an efficient brand image through events and campaigns. As the world is shifting from analog to digital, most advertising companies are shifting to digital marketing i.e. using the Internet and mobile phones to promote their brand. A firm should allocate most of its budget to promote the brand in periods of prosperity to create the best brand advertising company. Also, the firm should use various kinds of media channels encompassing the Internet to promote its product or service. This will help the seasonal industry to refrain from loss and increase its revenue. The impact of promotional activities should be maximized during the period of increased demand.
Maintaining the Economic Order Quantity
Economic Order Quantity (EOQ) means the optimum level of stocks that a firm should maintain to meet the regular demands and reduce the cost of production. In case, more stocks are produced than the level of demand, some of the stocks become obsolete and this leads to increased manufacturing costs. Seasonal industries should always sustain the level of stocks as per economic order quantity.
Focus on Brand Value and Image
The seasonal industry should focus on the creation of exceptional brand value and its reputation. Various aspects of brand value comprise retaining customer loyalty and creation of awareness about the brand delivered to end consumers. If the above facets are paid proper attention to, the brand value of the seasonal firms increases, therefore, creating a good brand name. Promotions are done such that the brand value increases and consumers gain awareness about the presence of the brand in the market, thereby, making it the best SEO reseller company in India or anywhere in the world.
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